Afren (Presentation) - Proactive Investors
Afren (Presentation) - Proactive Investors
Afren (Presentation) - Proactive Investors
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Canaccord Adams Global Energy Conference<br />
BEYOND FIRST OIL<br />
24 October 2007
Notice<br />
The content of this presentation has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000 (“FSMA”).<br />
Reliance on the information contained in this presentation for the purposes of engaging in any investment activity may expose the investor to a significant risk of<br />
losing all of the property or assets invested. Any person who is in any doubt about the investment to which this presentation relates should consult a person<br />
duly authorised for the purposes of FSMA who specialises in the acquisition of shares and other securities.<br />
The information in this presentation is subject to updating, revision and amendment. The information in this presentation, which includes certain information<br />
drawn from public sources does not purport to be comprehensive and has not been independently verified. This presentation does not constitute or form part of<br />
any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for or otherwise acquire, any securities in <strong>Afren</strong> plc (the "Company") in any<br />
jurisdiction or any other body corporation or an invitation or an inducement to engage in investment activity under section 21 of the Financial Services and<br />
Markets Act 2000, nor shall it or any part of it form the basis of or be relied on in connection with any contract therefore. This presentation does not constitute<br />
an invitation to effect any transaction with the Company or to make use of any services provided by the Company. No reliance may be placed for any purpose<br />
whatsoever on the information contained in this presentation or any assumptions made as to its completeness. No representation or warranty, express or<br />
implied, is given by the Company, any of its subsidiaries or any of its advisers, officers, employees or agents, as to the accuracy, reliability or completeness of<br />
the information or opinions contained in this presentation or in any revision of the presentation or of any other written or oral information made or to be made<br />
available to any interested party or its advisers and, save in the case of fraud, no responsibility or liability is accepted (and all such liability is hereby excluded<br />
for any such information or opinions). No liability is accepted by any of them for any such information or opinions (which should not be relied upon) and no<br />
responsibility is accepted for any errors, misstatements in or omissions from this presentation or for any loss howsoever arising, directly or indirectly, from any<br />
use of this presentation or its contents.<br />
The information and opinions contained in this presentation are provided as at the date of this presentation and are subject to change without notice.<br />
In the United Kingdom, this presentation is only being distributed to persons who are reasonably believed to be persons who fall within Articles 19 (1) and 19 (5)<br />
(investment professionals) or 49 (2) (High net worth Companies etc.) of The Financial Services and Markets Act 2000 (Financial Promotions) Order 2005<br />
(“Financial Promotion Order”) or to other persons to whom this presentation may otherwise be lawfully distributed. Persons who do not fall within any of these<br />
definitions should return this presentation immediately to the Company and in any event, must not act or rely upon the information contained in this<br />
presentation. By listening to this presentation, each person is deemed to confirm, warrant and represent that they fall under one of the Articles set out above.<br />
The contents of this presentation must not be copied or distributed by recipients and its contents are confidential.<br />
No recipient of the information in this presentation should deal in or arrange any dealing in or otherwise base any behaviour (including any action or inaction) in<br />
relation to any securities to which this document relates (including behaviour referred to in section 118(6) of the Financial Services and Markets Act 2000) which<br />
would or might constitute market abuse (as defined in section 118 of the Financial Services and Markets Act 2000).<br />
Any financial projection and other statements of anticipated future performance that are included in this presentation or otherwise furnished are for illustrative<br />
purposes only and are based on assumption by the Company's management that are subject to significant risks and uncertainties and may prove to be<br />
incomplete or inaccurate. Actual results achieved may vary from the projections and the variations may be material. Variations in the assumptions underlying the<br />
projections may also significantly affect projected results. This presentation has not been examined, reviewed or compiled by the Company's independent<br />
certified accountants. No representation or warranty of any kind is made with respect to the accuracy or completeness of the financial projections or other<br />
forward-looking statements, any assumptions underling them, the future operations or the amount of any future income or loss.<br />
By attending / reading the presentation you agree to be bound by these provisions.<br />
www.<strong>Afren</strong>.com - October 2007<br />
2
Agenda<br />
◦ A unique African proposition<br />
◦ Production growth<br />
◦ Reserves growth<br />
◦ Conclusions<br />
www.<strong>Afren</strong>.com - October 2007<br />
3
A Divider unique Slide African proposition
The Premier African E&P Independent<br />
NIGERIA<br />
◦ Management team with<br />
extensive African experience<br />
◦ Initial strategic focus on West<br />
Africa<br />
SAÕ TOMÉ & PRINCÍPE JDZ<br />
GABON<br />
CONGO<br />
◦ Visible production growth<br />
profile<br />
◦ Material high impact reserve<br />
growth<br />
ANGOLA<br />
◦ Strong financial resources<br />
www.<strong>Afren</strong>.com - October 2007<br />
5
Extensive African / industry experience<br />
Board<br />
Dr Rilwanu Lukman - Chairman<br />
Guy Pas<br />
Non exec<br />
Evert Jan Mulder<br />
COO<br />
Osman Shahenshah<br />
Chief Executive<br />
Egbert Imomoh<br />
Chairman <strong>Afren</strong> Nigeria<br />
Peter Bingham<br />
Non exec<br />
John St. John<br />
INTERNATIONAL ADVISORY BOARD<br />
Ennio<br />
Sganzerla<br />
Bert Cooper<br />
Founder<br />
Brian<br />
Ward<br />
MANAGEMENT<br />
Nick Johnson<br />
Expl. & New Ventures<br />
Alan Hunt<br />
Okoro Setu Project<br />
Constantine Ogunbiyi<br />
<strong>Afren</strong> Nigeria / Counsel<br />
Assoc Director<br />
Galib Virani<br />
Acquisitions / IR<br />
Jeremy Whitlock<br />
Financial Controller<br />
www.<strong>Afren</strong>.com - October 2007<br />
6
A track record of delivery<br />
<strong>Afren</strong> Share Price (p/sh)<br />
90<br />
85<br />
80<br />
75<br />
70<br />
65<br />
60<br />
55<br />
50<br />
45<br />
40<br />
<strong>Afren</strong><br />
AIM All Share<br />
AIM Oil and Gas Index<br />
◦ Listed on 14 March 2005 on London Stock Exchange<br />
(AIM)<br />
◦ Ticker – AFR.L<br />
◦ 273 mm shares in issue (385 mm fully diluted)<br />
◦ Market capitilisation: US$470 mm (2)<br />
1-Jan 1-Feb 1-Mar 1-Apr 1-May 1-Jun 1-Jul 1-Aug 1-Sep 1-Oct<br />
Growing Reserves & Resources base<br />
◦ Okoro Setu 2P reserves<br />
◦ 32mmbbl (NSAI certified)<br />
◦ 42mmbbl (FDP approved)<br />
◦ Unrisked prospective resources: 120mmbbl<br />
Material growth from existing portfolio<br />
◦ Gross production: 15-20,000bopd (mid 2008)<br />
◦ 2008 Revenue (1) : US$340 mm<br />
◦ 2008 EBITDA (1) : US$240 mm<br />
Strong financial position<br />
◦ Cash balance: US$96.1 mm (H1 2007)<br />
◦ US$500 mm raised in debt and equity since<br />
inception<br />
Significant upside<br />
◦ Active New Ventures pipeline<br />
◦ Exploration portfolio: over 25 identified leads /<br />
prospects<br />
www.<strong>Afren</strong>.com - October 2007<br />
Note: (1) <strong>Afren</strong> internal estimates (at US$50 price deck). (2) Market data as at close on 18 October 2007,<br />
source Datastream<br />
7
Initial focus on West Africa<br />
Highest growth in proved reserves…<br />
… with significant reserves in West Africa<br />
Africa<br />
Proved Oil Reserves<br />
Total: 50 billion barrels<br />
Proved Gas Reserves<br />
Total: 219 Tcf<br />
Europe<br />
Middle East<br />
South America<br />
77%<br />
81%<br />
Asia Pacific<br />
North America<br />
-50% 0% 50% 100% 150%<br />
Note : Growth over 1985 to 2005 period<br />
18%<br />
Nigeria Angola Equatorial Guinea Congo Gabon<br />
◦ High margin barrels<br />
◦ Established oil industry / infrastructure<br />
◦ Gas commercialisation in infancy<br />
◦ Most prospective accessible exploration province in world<br />
◦ 30 bboe to be discovered in Nigeria (16 bboe onshore)<br />
◦ Majors – mature onshore position<br />
◦ Proved fields overlooked / undeveloped by Majors<br />
www.<strong>Afren</strong>.com - October 2007<br />
8<br />
Source : Waterous & Co, OPEC Annual Statistical Bulletin 2003, BP Statistical Review of World Energy
Rapid portfolio expansion<br />
Ofa<br />
Eremor<br />
Ogedeh<br />
1<br />
2<br />
3<br />
2<br />
NIGERIA<br />
1<br />
3 4,5<br />
CAMEROON<br />
◦ Q1 05:<br />
◦ Q1 05:<br />
◦ Q2 05:<br />
IPO on LSE<br />
JDZ Block 1, Nigeria-São Tomé &<br />
Príncipe<br />
Iris and Themis Marin blocks and<br />
Ibekelia Licence Area, Gabon<br />
Okoro Setu<br />
Iris Marin,Themis<br />
Marin & Ibekelia<br />
4,5<br />
6,7,8<br />
9<br />
Eq. G<br />
◦ Q3 05:<br />
◦ Q2 06:<br />
◦ Q2 06:<br />
Ogedeh field, Nigeria<br />
Okoro and Setu fields, Nigeria<br />
La Noumbi, Congo (Brazzaville)<br />
Block 1 JDZ<br />
9<br />
GABON<br />
◦ Q4 06: Cabinda Central Licence Block B,<br />
Angola *<br />
La Noumbi<br />
Cabinda B<br />
10<br />
11<br />
6,7,8<br />
10<br />
11<br />
CONGO<br />
◦ Q4 06:<br />
◦ Q2 07:<br />
◦ Q3 07:<br />
Increase in Ibekelia, Gabon<br />
Ofa field, Nigeria<br />
Eremor field, Nigeria<br />
Near term development<br />
Low cost exploration<br />
High impact exploration<br />
Source: <strong>Afren</strong>. Note * HoA signed<br />
www.<strong>Afren</strong>.com - October 2007<br />
9
Material high impact reserve growth<br />
Development projects<br />
Exploration<br />
2P Reserves<br />
3P Reserves<br />
Contingent Resources<br />
High impact<br />
Low cost<br />
Recoverable reserves<br />
◦ 2P NSAI certified: 32mmbbl<br />
◦ 2P FDP approved: 42 mmbbl<br />
◦ 10-year average reserve life<br />
Net Prospective Resources<br />
◦ 120 mmboe unrisked<br />
Source: NSAI, <strong>Afren</strong><br />
www.<strong>Afren</strong>.com - October 2007<br />
10
Production growth forecast<br />
90<br />
80<br />
<strong>Afren</strong> 2P<br />
Appraisal Projects<br />
New Ventures<br />
70<br />
60<br />
'000b/d<br />
50<br />
40<br />
30<br />
20<br />
10<br />
0<br />
2008 2009 2010 2011 2012 2013<br />
◦ 15 – 20,000 bopd by mid 2008<br />
◦ Exploration and development upside in current portfolio<br />
◦ Strong New Ventures pipeline<br />
Source: <strong>Afren</strong>; indicative projections based on internal targets<br />
www.<strong>Afren</strong>.com - October 2007<br />
11
Strong financial resources<br />
2008 capital budget<br />
Capital structure<br />
◦ Strong balance sheet (US$ 96.1 mm net cash)<br />
◦ US$200 mm non-recourse debt facility secured<br />
◦ Minimal hedging policy<br />
Share ownership<br />
Wellington Management: 21.3 mm (8%)<br />
Development<br />
Exploration<br />
New Ventures<br />
73%<br />
11%<br />
15%<br />
Other<br />
free<br />
float<br />
Lansdowne Partners: 15.3 mm (6%)<br />
UBS: 12.7 mm (5%)<br />
JP Morgan: 11.0 mm (4%)<br />
Management & Directors: 10.7 mm (4%)<br />
Investec Asset mgt.: 10.6 mm (4%)<br />
IFC: 8.4 mm (3%)<br />
Dresdner: 9.4 mm (4%)<br />
Standard Bank: 9.0 mm (3%)<br />
www.<strong>Afren</strong>.com - October 2007<br />
Source: <strong>Afren</strong>. Net cash position as at 30 June 2007. Share ownership as at 30 September 2007<br />
12
Production Divider Slide growth
Nigeria: near term development<br />
Asset summary<br />
Production Peak (1) Local<br />
Start-up ‘000 bopd Partner<br />
Ogedeh<br />
Eremor<br />
N I G E R I A<br />
Ofa<br />
Okoro Setu<br />
Okoro Setu 2008 15-20 Amni<br />
Eremor 2008 4-5 Excel<br />
Ofa 2008 2-3 IEL<br />
Ogedeh 2009 4-5 Bicta<br />
Okoro Setu development<br />
◦ Five-well development (Adriatic VI)<br />
◦ FPSO secured (Armada Perkassa)<br />
◦ Drilling to commence end 2007<br />
◦ First oil early 2008<br />
Appraisal / development<br />
◦ Re-entry of Ofa-1<br />
◦ Completion of Eremor-1 and tie-back<br />
◦ Ogedeh development options under<br />
review<br />
www.<strong>Afren</strong>.com - October 2007<br />
14<br />
Source: Google Earth. Note (1) : <strong>Afren</strong> estimates
Okoro Setu: background<br />
3D view of Okoro reservoir sands<br />
N<br />
1000 m.<br />
Okoro-1 Okoro-3,3ST Okoro-2<br />
3ST<br />
Oil water<br />
contacts<br />
◦ Two hydrocarbon bearing zones<br />
◦ 22°API low GOR crude<br />
◦ Development drilling from Q4<br />
2007<br />
◦ In-place volumes (2P): 115<br />
mmbbls (NSAI)<br />
◦ Recovery Factor of analogous<br />
fields: 45% – 50%<br />
Okoro Setu reserves<br />
mmboe 1P 2P 3P<br />
Approved FDP case 30 42 58<br />
Exploration / appraisal history<br />
Date Well name Well type Operator Result<br />
Jul-73 Okoro -1 Exploration Japan Petroleum Oil<br />
Nov-74 Okoro -2 Appraisal Japan Petroleum Water wet<br />
May-02 Setu -1 Exploration Amni International Oil & gas<br />
Aug-02 Setu -2 Appraisal Amni International Water wet<br />
Sep-06 Okoro -3 Appraisal <strong>Afren</strong> (as tech. serv. provider) Oil<br />
Dec-06 Okoro -3 ST Appraisal <strong>Afren</strong> (as tech. serv. provider) Oil<br />
www.<strong>Afren</strong>.com - October 2007<br />
15
Okoro Setu: FDP approved<br />
◦ Water depth of 50 ft<br />
◦ 12km offshore<br />
Setu<br />
◦ Initial development plan -<br />
5 high angle wells<br />
Okoro<br />
Wellhead platform<br />
3 Phase Production Flowline<br />
Export Tanker<br />
◦ Gravel pack completions<br />
for sand control<br />
◦ FPSO moored 1km south<br />
of field for crude<br />
processing<br />
3 Phase Test Flowline<br />
Gas Lift Flowline<br />
FPSO<br />
With Gas Lift<br />
www.<strong>Afren</strong>.com - October 2007<br />
16<br />
Source: <strong>Afren</strong>
Okoro Setu: success breeds success<br />
Q2 06 Q3 06 Q4 06 Q1 07 Q2 07 Q3 07 Q4 07 Q1 08<br />
Q2 08<br />
Agreement with Amni<br />
Rig contract for development<br />
drilling secured<br />
Appraisal drilling<br />
RBL facility / certified reserves<br />
FDP approval<br />
FPSO secured<br />
Long lead items<br />
Development drilling<br />
First oil<br />
Peak production<br />
Complete<br />
In progress<br />
www.<strong>Afren</strong>.com - October 2007<br />
17<br />
Source: <strong>Afren</strong>
Okoro Setu: Adriatic VI drilling rig contracted<br />
GSF Adriatic VI rig contracted Drill schedule (1)<br />
◦ Jack-up<br />
◦ Cote d’Ivoire (Foxtrot)<br />
◦ 300 ft water depth<br />
◦ Gabon (Themis Marin)<br />
◦ 25,000 ft drilling depth<br />
◦ Nigeria (Okoro)<br />
www.<strong>Afren</strong>.com - October 2007<br />
18<br />
Source: Global Santa Fe. Note: (1) as at 19/10/07
Okoro Setu: FPSO secured<br />
Armada Perkassa<br />
◦ 360,000 barrels storage capacity<br />
◦ 27,000 b/d processing capacity<br />
◦ 5-year lease with option to extend<br />
◦ Upgrade: process facilities, test separators,<br />
process controls, etc.<br />
www.<strong>Afren</strong>.com - October 2007<br />
19<br />
Source: Bumi Armada
Okoro Setu: well head platform<br />
◦ Drilling template complete<br />
◦ Decks commencing fabrication<br />
Well Head Platform Schematic<br />
Drilling template<br />
www.<strong>Afren</strong>.com - October 2007<br />
20
Okoro Setu: community relations<br />
◦ Pro-active within local community - early engagement<br />
◦ Established Community Relations Committee<br />
◦ Active recruitment from within Local Community<br />
- FPSO, drilling rig, etc<br />
Okoro Community<br />
development program<br />
Close Co-ordination<br />
Micro<br />
credit system<br />
12%<br />
Core/admin costs<br />
16%<br />
Okoro project<br />
scholarships<br />
8%<br />
<strong>Afren</strong>/Amni<br />
Feasibility study<br />
Portable water<br />
Projects<br />
2%<br />
Local Government<br />
Representative<br />
COMMUNITY<br />
RELATIONS<br />
COMMITTEE<br />
Okoro Community<br />
Dev. Foundation<br />
Traditional Ruler<br />
Representative<br />
Health<br />
Centre<br />
24%<br />
Feasibility study<br />
of local jetty<br />
2%<br />
Vocational training<br />
36%<br />
www.<strong>Afren</strong>.com - October 2007<br />
21<br />
Source: <strong>Afren</strong>
Marginal field strategy: overview<br />
◦ Indigenous partner<br />
◦ <strong>Afren</strong> provides capital and<br />
technical expertise<br />
◦ Exploration / appraisal history<br />
(well defined structures)<br />
◦ Low cost entry<br />
Eremor<br />
Ogedeh<br />
Ofa<br />
◦ Low development costs<br />
(recovered)<br />
◦ Incremental reserves, production,<br />
cash-flow<br />
◦ Upside development potential<br />
◦ Quick turn-around<br />
appraisal development production<br />
Area of<br />
Interest<br />
www.<strong>Afren</strong>.com - October 2007<br />
22<br />
Source: IHS Energy
Marginal field strategy: Eremor development<br />
D3 Sand Depth structure map<br />
EREMOR-3<br />
EREMOR-4<br />
Exploration / appraisal<br />
Date Well Type Operator Result<br />
1978 Eremor-1 Exploration Shell Oil<br />
1984 Eremor-2 Appraisal Shell Water wet<br />
1984 Eremor-3 Appraisal Shell Oil<br />
1990 Eremor-4 Appraisal Shell Water wet<br />
2005 Eremor-1re Appraisal Excel Oil<br />
EREMOR-2<br />
EREMOR-1<br />
◦ Covered by 3D seismic<br />
◦ Five hydrocarbon bearing zones<br />
◦ Recovery Factor: 20 – 40%<br />
2kms<br />
Eremor resources<br />
mmboe STOIIP Recoverable<br />
30 10<br />
◦ Good oil samples of low GOR, 20 0 degree<br />
API<br />
◦ Phase-1 FDP approved<br />
- Re-complete existing well and tie-back to<br />
existing infrastructure<br />
www.<strong>Afren</strong>.com - October 2007<br />
23<br />
Source: <strong>Afren</strong>
Reserve Divider Slide growth
Exploration portfolio - summary<br />
NIGERIA<br />
Country<br />
W.I. (%)<br />
Gross unrisked<br />
Resources<br />
mmbbl<br />
Net unrisked<br />
Resources<br />
mmbbl<br />
Nigeria-Sao Tome JDZ<br />
Block 1 4.41% 1,000<br />
44<br />
CAMEROON<br />
Gabon<br />
Themis Marin 12.86% 100<br />
Iris Marin 12.86% 100<br />
Ibekelia 20.00% 40<br />
13<br />
13<br />
8<br />
Congo (Brazz)<br />
Block 1 JDZ<br />
Iris Marin,Themis<br />
Marin & Ibekelia<br />
1<br />
2<br />
1<br />
2<br />
Eq. G<br />
GABON<br />
La Noumbi 14.00% 225<br />
32<br />
Angola<br />
*Cabinda Central Block B 5.00% 250 13<br />
1,710 123<br />
La Noumbi<br />
3<br />
Cabinda B<br />
4<br />
3<br />
4<br />
CONGO<br />
www.<strong>Afren</strong>.com - October 2007<br />
25<br />
Source: <strong>Afren</strong>, HOA signed in Angola
Conclusions<br />
Divider Slide
2007/08 key objectives<br />
Achieved<br />
Okoro Setu Development<br />
Field Development Plan – Gov’t approval<br />
FPSO contract<br />
Debt facility, certified reserves<br />
Development drilling (5 well program)<br />
First oil<br />
Marginal Fields Development<br />
Ofa well test<br />
Development planning<br />
Development drilling<br />
First Oil<br />
Exploration<br />
Congo - La Noumbi seismic & exploration well<br />
Gabon – Themis exploration well<br />
New Ventures<br />
Additional Nigerian undeveloped reserves<br />
Asset acquisitions in West Africa<br />
1Q 2007 2Q 2007 3Q 2007 4Q 2007 1Q 2008 2Q 2008<br />
Complete<br />
In progress<br />
Source: Company<br />
www.<strong>Afren</strong>.com - October 2007<br />
27
The Premier African E&P Independent<br />
The management team to deliver new African oil<br />
◦ Preferential access, delivery and execution<br />
◦ Track record: 11 assets in 5 countries<br />
Strong production growth profile<br />
◦ 15-20,000 bopd by mid 2008<br />
Material high impact reserves growth<br />
◦ NSAI 2P certified (32 mmbbl); FDP (42 mmbbl)<br />
◦ 120 mmbbl unrisked resources<br />
Strong financial position<br />
◦ US$96.1 mm net cash<br />
◦ US$200 mm non-recourse debt facility<br />
www.<strong>Afren</strong>.com - October 2007<br />
28
Appendix Divider Slide
Background<br />
Founded in late 2004<br />
◦ Team including Dr Rilwanu Lukman (Chairman) and Osman<br />
Shahenshah (Chief Executive)<br />
Trading<br />
◦ Listed on 14 March 2005 on London Stock Exchange (AIM)<br />
◦ Ticker – AFR.L<br />
◦ 273 mm shares in issue (385 mm fully diluted)<br />
◦ Market capitilisation: US$470 mm (1)<br />
Presence<br />
◦ Offices in London and Lagos<br />
◦ Assets in Nigeria, Congo Brazzaville, Gabon, Angola, São Tomé &<br />
Príncipe<br />
www.<strong>Afren</strong>.com - October 2007<br />
30<br />
(1) Market data as at close on 18 October 2007
Executive management<br />
Osman Shahenshah<br />
Chief Executive<br />
◦ 20 years experience of oil and gas<br />
finance<br />
◦ One of the founders of <strong>Afren</strong><br />
◦ International career began with<br />
Credit Suisse First Boston<br />
◦ Senior positions in the oil and gas<br />
finance groups of the<br />
International Finance Corporation<br />
(private sector arm of the World<br />
Bank), and the investment<br />
banking divisions of Dresdner<br />
Kleinwort Wasserstein and<br />
Mediocredito Centrale<br />
◦ More than 15 years experience in<br />
the African Oil & Gas sector<br />
working with Shell, Chevron,<br />
Total, ENI and Nigerian National<br />
Petroleum Corporation<br />
◦ PhD from University of<br />
Pennsylvania, MSc from Columbia<br />
University and a BA from Brown<br />
University<br />
Evert Jan Mulder<br />
Chief Operating Officer<br />
◦ Over 25 years industry experience<br />
◦ Addax, Shell, Weatherford and<br />
Halliburton<br />
◦ Over 13 years experience in Nigeria<br />
◦ Most recently COO of Addax,<br />
Nigeria’s largest independent oil<br />
producer<br />
◦ Responsible for increasing<br />
production from 30,000 bopd to<br />
75,000 bopd in 24 months, while<br />
maintaining reserves at Addax<br />
◦ Over 10 years with Shell (Head of<br />
Commercial Planning in Nigeria and<br />
Head of Production Technology for<br />
Shell Expro)<br />
◦ Formerly Business Development<br />
Manager and the Global Manager of<br />
Reservoir Description for<br />
Halliburton<br />
◦ MSc in mining engineering from the<br />
Technical University of Delft,<br />
Netherlands<br />
Egbert Imomoh<br />
Exec. Chairman, <strong>Afren</strong> Nigeria<br />
◦ 36 years experience with Shell in<br />
Nigeria, UK and Netherlands<br />
◦ Formerly Deputy Managing<br />
Director of Shell Petroleum<br />
Development Company (Nigeria)<br />
("SPDC") producing 1 mm bopd<br />
◦ Held various senior positions<br />
throughout the Shell group from<br />
Chief Petroleum Engineer in<br />
SPDC, Technical and Planning<br />
Manager to Deputy MD of SPDC<br />
◦ Member of the Society of<br />
Petroleum Engineers and has<br />
served on the SPE board as<br />
regional Director for Africa<br />
◦ BSc in Mechanical Engineering<br />
from Birmingham University<br />
www.<strong>Afren</strong>.com - October 2007<br />
31
Okoro Setu development – location map<br />
Setu<br />
Okoro<br />
Area of<br />
Interest<br />
www.<strong>Afren</strong>.com - October 2007<br />
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Source: IHS Energy, <strong>Afren</strong>
Nigeria: Ogedeh development<br />
Exploration / appraisal<br />
Date Well Type Operator Result<br />
1993 Ogedeh-1 Exploration Chevron Oil<br />
◦ Two oil bearing ‘A’ and ‘D’ sands<br />
◦ Covered by 3D seismic<br />
◦ Certified resources up to 15 mmbbls<br />
(Senergy)<br />
◦ Low cost development<br />
◦ Close to existing infrastructure<br />
◦ Joint development options under<br />
consideration<br />
www.<strong>Afren</strong>.com - October 2007<br />
33<br />
Source: IHS Energy, <strong>Afren</strong>
Nigeria: Ofa development<br />
Exploration / appraisal<br />
Date Well Type Operator Result<br />
1970 Ofa-1 Exploration Shell Oil<br />
1998 Ofa-2 Exploration Shell Gas condensate<br />
Ofa-1 Well<br />
Location<br />
◦ Covered by 3D seismic<br />
◦ 8 oil-bearing zones @ 6,670 and<br />
7,280 feet<br />
◦ STOIIP of 75 to 150mmbbl<br />
(Gaffney, Cline & Associates)<br />
◦ Low-cost entry and development<br />
◦ Tie-back to nearby infrastructure<br />
◦ Re-entry well completed: August<br />
2007<br />
Area of<br />
Interest<br />
Source: IHS Energy<br />
www.<strong>Afren</strong>.com - October 2007<br />
34
Congo: La Noumbi - high impact exploration<br />
Doungou<br />
La Noumbi<br />
Cabinda ‘B’<br />
Nanga<br />
Area of<br />
Interest<br />
◦ High impact exploration – adjacent to<br />
M’Boundi<br />
◦ Vandji play on trend through to La<br />
Noumbi<br />
◦ <strong>Afren</strong> 14% interest<br />
◦ Operator Maurel et Prom (48.5%) and<br />
partner Burren (37.5%)<br />
◦ 912 km of recently acquired 2D seismic,<br />
now being processed<br />
◦ Doungou well completed in October 2007<br />
- Working hydro-carbon system<br />
established in Djeno and Vandji<br />
Formations<br />
◦ Active drilling programme 2008<br />
◦ Unrisked EUR: 225 mmbbls<br />
Source: IHS Energy, <strong>Afren</strong><br />
www.<strong>Afren</strong>.com - October 2007<br />
35
Angola: Cabinda Block B – high impact exploration<br />
◦ Strategic Angola entry<br />
Area of<br />
Interest<br />
◦ HoA with GER for 5% interest<br />
◦ Multiple reservoir targets. On trend<br />
with M'Boundi (Vandji play)<br />
◦ 32 wells (1957-1971) without<br />
seismic data; 4 wells tested light oil<br />
(1,000 bopd) and 7 wells with oil<br />
shows<br />
◦ Force Majeure expected to be lifted<br />
in 2007<br />
◦ Unrisked EUR: 250 mmbbls<br />
Cabinda ‘B’<br />
Source: IHS Energy, Company<br />
www.<strong>Afren</strong>.com - October 2007<br />
36
Gabon: low cost exploration<br />
Area of<br />
Interest<br />
◦ 12.86% interest in Themis and Iris<br />
Marin<br />
◦ 20% interest in Ibekelia Study Area<br />
◦ Operated by Sterling Energy with<br />
partners Petro SA, Addax and Premier<br />
◦ Admiral prospect in Themis Marin to be<br />
drilled Q4 2007<br />
◦ Charlie prospect in Iris Marin to be<br />
drilled in 2008<br />
◦ Many other prospects/leads identified<br />
◦ Unrisked EUR: 240 mmbbls<br />
Source: IHS Energy, Company<br />
www.<strong>Afren</strong>.com - October 2007<br />
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JDZ block 1: high impact exploration<br />
Area of<br />
Interest<br />
◦ Obo -1 discovery in 2006 proved<br />
JDZ as a significant oil and gas<br />
province<br />
◦ Block 1 technical studies ongoing<br />
prior to further drilling<br />
◦ On trend with Nigerian deep water<br />
world-class oil fields<br />
~500 million bbls<br />
~1 billion bbls<br />
Obo-1<br />
- Akpo and Egina (Total): 1,500<br />
mmbbl<br />
◦ Block 1 gross potential estimated<br />
at circa 1 billion bbl<br />
◦ Multi firm well programme on<br />
Blocks 2, 3 and 4 from 2008<br />
Exploration drilling<br />
2008<br />
Block 1<br />
Chevron (45.9%)<br />
Addax (40%)<br />
Sasol (5.1%)<br />
Dangote (4.49%)<br />
<strong>Afren</strong> (4.41%)<br />
Source: IHS Energy, Company<br />
www.<strong>Afren</strong>.com - October 2007<br />
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